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by Jeff Ooi, Malaysia

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Fear again: Has Internet censorship started?

Jun 14, 2007 08:47

Active online authors and bloggers, and their readers, are having another bout with an unknown fear: Internet censorship.

This came after a few rounds of veiled threats to register bloggers in the last one year.

The latest concern about Internet censorship was triggered by a joint action by several authorities--Securities Commission (SC), Bank Negara Malaysia (central bank), Internet regulator Malaysian Communications Multimedia Commission (MCMC) and CyberSecurity Malaysia--in closing down several Web sites in the name of nabbing fraudulent investment schemes.

I received numerous emails and SMSes from readers in Malaysia who asked: By blocking access to alleged illegal investment Web sites and raiding the offices of an Internet firm in the country, have the authorities started a crackdown on cyber scams... and more?

If yes, what is going to prevent the authorities from blocking access to politically critical Web sites, or even going to the extent of censoring foreign news in the near future?

Already, outgoiing UK Prime Minister Tony Blair, in a farewell lecture on public life yesterday, has called for regulation of Internet-based publications, which, well, include blogs.

Web lock
In a press statement released June 12, the Securities Commission said it has collaborated with MCMC to block access to six Web sites, namely www.abbfund.com or www.abfund.us, www.cfdventure.com, www.swedenfund.com, www.uebond.com, www.esuissefund.com or www.efmf.com.pa and www.ecashfinance.com.

More scam Web sites will be blocked in the next few months, the SC said. It has identified some 60 Web sites that are involved in illegal cyber investments.

The alleged scam, known as SwissCash or Swiss Mutual Fund, claimed that investors' funds were channeled to business activities ranging from oil exploration to shipping and agriculture in the Caribbean.

Investors were required to pay a registration fee of US$30 (RM103.50) to join the scheme, which allegedly offered huge returns for a minimum investment of US$100 .

Meanwhile, the central bank, which regulates the banking industry and financial institutions, and the SC, which regulates the investment and equity market, have begun joint operations with the police in tracking down such illegal e-investment activities.

At the same time, the Inspector-General of Police, Musa Hassan, has asked for new laws to be introduced to prosecute Internet scam operators.

He said, the present set of laws only provide for the police to take action under the Commercial Crimes Investigation Department (JSJK) on cases of cheating that involves sale, purchase and renting of land, welfare aids, lottery, Ah Long (loan-sharks), scratch-and-win schemes, bomoh (witches) services, SMS and auctioning of customs confiscated goods.

"Investment through the Internet involving the illegal collection of deposits comes under the jurisdiction of the central bank unless it can be classified as a cheating case," the IGP was quoted as saying in the press.

The activities of the Internet scam operators are currently being investigated under sub-section 25 (1) of the Banking and Financial Institutions Act 1989 (Bafia) and the Prevention of Modified Illicit Money and Prevention of Terrorism Funding Act 2001.

The SC also stated that an illegal deposit-taking operator can be jailed up to 10 years or fined RM10 million, or both.

The fear
Concerned with the implications of the precedence of blocking access to the Websites, Screenshots reader P. Nair wrote:

Personally, I'm happy to see that the SC is paying attention to this matter. I've personally contacted the SC about these Web sites in the past and have suggested to them to take some actions to ward these investors from being scammed.

However, blocking these Web sites is actually censorship of the Internet and, as I'm sure you know, the MSC Bill of Guarantees ensures that the Internet cannot be censored.

BLOGGER'S NOTE: The MSC Bill of Guarantees Clause 7 stipulates that there shall not be Internet censorship to attract foreign investors to participate in the Multimedia Super Corridor (MSC) projects which was launched in 1996.

In my point of view, the MCMC or the ISPs might take this lead and first start playing the "morality card" to block access to pornographic sites. Then bolstered by mass public support, they may be bold enough to play some "national harmony card" to then start blocking access to politically critical Web sites and might even go to the extent of censoring foreign news.

My hope is that this issue can be brought to light as there are other ways to tackle scam sites. One such way would be to redirect a user to a page that warns the user of the nature of the Web site and then giving the user the option to continue or to stop.

Nair's views were echoed by reader Irina: "I am against these illegal online schemes but doesn't this violates the MSC Bill of Guarantees?"

On the other hand, several bloggers SMSed and emailed Screenshots to express similar concerns. One had pointed to a blog entry by TV Smith:
Some greedy sods got burned by some dubious online investment schemes and who do they blame? The Internet, of course. How different is this from the guy who was approached by a stranger on the street flashing a Rolex under his jacket? The buyer thinks he can earn a fast buck by reselling it.

Outside the Internet, there are a thousand more cepat kaya schemes with similar modus operandi floating around. Heck, even a lawyer was sending loads of money to Nigerian scammers who used snail mail. But never blame it on one's own greed and stupidity, blame it on the Internet.

The general consensus is that while the authorities should come down hard on the scam operators, they should spare the Internet.

Instead of blocking access to the Web sites, the authorities should augment their raids and prosecution with sustained campaigns to educate the gullible public on the perils of such Internet investment schemes.

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mhhafeez

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mhhafeez says...
I just want to speak out my suggestion on this subject...

'They' should do deep & focus research to verify which internet investment is real or scam. they dont even do it, immediately banned those websites by blocking the access.

they thought that all the internet investment is scam and dont even give themself the chance to look further the pro and cons. they should check which one is real online offshore investment before deciding to block those websites.

they told the people to withdraw & close their internet investment account but they dont give the relevant time. they immediately block it. Some people who invest in real online offshore investment now cannot get their returns and withdraw their cash for monthly expenses. Few of those offshore financial services have been delivering their promises for more than 800+ days, without fail paying single cent to our malaysian offshore investors.

they should be a little flexible in their decision, or AT LEAST do few researchs on the popular internet investments.

THE PEOPLE NOW NEED THE SUPPORT FROM THE GOVERMENT TO BE FLEXIBLE IN THEIR POLICY AGAINTS INTERNET INVESTMENT. THE FOREIGN EXCHANGES FROM THEIR OFFSHORE INVESTMENT WILL BENEFIT THE COUNTRY IN THE LONG RUN. -

Jun 28, 2007 22:01

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About Jeff Ooi

Jeff Ooi is an Internet and e-Business consultant based in Kuala Lumpur who's spent the last four years blogging internationally on the tech scene, on anything and nothing. Which doesn't really explain why most of his own technology is about three years out of date. He doesn't even own a PDA after his Palm V crashed. He's on 3G, though... Lemak Lemang refers to coconut-flavored sticky rice stuffed in a bamboo container.